State RegulationsTN specificDifficulty 2/5
A Tennessee insured pays premiums weekly under an individual accident and sickness policy and misses the payment due on Monday. How long does the grace period keep the policy alive after the due date?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under T.C.A. § 56-26-108(3), the grace period for weekly premium modes is 7 days. The insured has a full week after the missed due date to pay the overdue premium before the individual accident and sickness policy lapses. Tennessee keys the grace period to the premium mode, so the shortest window belongs to the shortest mode.
Why the other options are wrong
- A) Tennessee's required grace provision gives weekly-mode insureds 7 days, not a single day; nothing in T.C.A. § 56-26-108(3) ends the grace period the next day.
- B) 10 days is the grace period for monthly premium modes under T.C.A. § 56-26-108(3), not weekly modes.
- D) 31 days is the grace period for all modes other than weekly and monthly under T.C.A. § 56-26-108(3); weekly premiums get the shortest window.
Memory hook
Shortest mode, shortest leash: weekly premiums get 7 days.